This is a courtesy copy. We reserve the right to publish without your edits if we do not receive the transcript back in a timely manner. We publish Q&A as returned to us. Please send back a clean copy without tracking or strikethroughs. Be sure to return as a Word document. Include a corporate logo and CEO photo (JPEG) with your edits. Highlight text (1 sentence to a short paragraph) for a “pull quote.” Thanks, Lynn Fosse, Senior Editor CEOCFOMagazine 352.431.3400 lynn.fosse@CEOCFOmagazine.com www.ceocfointerviews.com Please review the contact info below: Pamela Szabo Founder + CTO Stone Bond Technologies 1021 Main Street Suite 1550 Houston, TX – 77002 713-622-8798 www.stonebond.com Interview conducted by: Lynn Fosse, Senior Editor CEOCFO Magazine (Please insert narrative bio and corporate profile. If info already here you may replace if you wish) BIO: Ms. Szabo is the primary architect of Enterprise Enabler. She has spent the majority of her career working with information technology, with experience ranging from technical programming, computer graphics, robotics, analysis, and design, through project management as well as the "softer" aspects of implementation work, including business process re-engineering and change management. As a result of several years focused study of integration requirements of information requirements of information systems for the energy industry, she became interested in making integration easily available to scientist, engineers, and data analysts without being dependent on a programmer. Her overall concept, architecture and philosophy have become Enterprise Enabler. Ms. Szabo holds a BS, summa cum laude, in Computer Science from the University of Houston. AboutStone Bond Technologies: Business and government face similar challenges with data complexity and timely availability including: Constant business change driving rapid access to data. Exploding volumes and complexity of data that increase risk and reduce business agility. Financial constraints necessitating more cost-effective IT solutions and a faster time-to-value for the investments already made. Our solution, Enterprise Enabler™, the industry’s leading comprehensive multiapplication integration solution for enterprise data integration and federation, gives you real-time availability of information when and where it is needed. We combine this with the business logic driving the data movement, so that you can gain control of your business data The vision behind the creation of Enterprise Enabler has been to make data available and valuable to anyone. The motto of our development team has been The economy of movement conceals the complexity of what is being executed. The result has been a complex solution with a very easy to use interface making data valuable to the business with an exceptionally fast time-to-value. For Stone Bond, this is a journey, not a destination. Please ‘check’ any highlighted words or phrases listed as inaudible; we were unable to understand these words or phrases. CEOCFO: Ms, Szabo, what is the concept behind Stone Bond Technologies? Ms. Szabo: The concept is to INAUDIBLE all of the activities of getting data, moving throughout the enterprise and however the data needs to be. We cover the space of a classic enterprise middleware, but we have the full scope of middleware in a single environment. Most middlewares require one of their products to another, to another, to another and cobble them all together to get a complete INAUDIBLE one environment, and you can create all kinds of integration in a fraction of the time of doing it with any other INAUDIBLE. CEOCFO: What are you able to tell us about the technology that allows you to do what others cannot or do not? Ms. Szabo: I think the answer is that instead of going through all of the machinations of building integration, moving data from here, you are able to do that and set it up in minutes instead of weeks. The reason is that it is a single, cohesive solution that you are just configuring instead of writing a ton of scripting or programming or anything like that. CEOCFO: When you are speaking with potential customers, do they understand the difference easily or is it more likely they just care about the end result? Ms. Szabo: These days, people are really interested in the agility that you can get from being able to build integration quickly, modify it as you need and allow the enterprise to change directions quickly, whereas otherwise you cannot. The people who we talk to either get in when they see it or we are talking to the wrong people who do not understand what the problem is that we are solving. In fact, we have had trouble over our long history because we have been around for 12 years, and this has not been something that people have thought about because it turns out that it is a kind of a disruptive approach. We have had in the last maybe three years, the analysts have come up with a term for one of the key things that is underlying what we do. That is data virtualization, and it is not the same thing as virtualizing data where you take your data and put it in the clouds, for example. It is taking the data live from the end points and pulling them all together live and delivering the data wherever it is needed, when it is needed on demand. That is a concept that has been a core to our product from the beginning, but it is only now that people are beginning to understand that you really need to be able to move data live, not put it in another database just so you can pull it back out again to make sense. That is largely what happens in enterprises today. CEOCFO: Are there particular industries of focus for you, types of companies or sizes of companies? Ms. Szabo: We are mostly large companies, Fortune 500. We have a number of smaller companies. One of the interesting things about our technology is that it does not just scale up, but it scales down because it is all a single product and you just grow things by the figure. We started out in the oil industry, which I think is the reason we had a different perspective on integration than people who start in a finance or accounting kind of world. We are in many different industries. We are in utilities, oil and gas, care and INAUDIBLE. CEOCFO: How do you know that you will be able to integrate any new technology or system that comes along? What is the key to accepting anything and everything into your grand plan? Mr. Szabo: It really boils down to the core architecture that we have. We have everything so modular that if we come across an endpoint of data either delivering it, packaging it as a standard or all these new standards and web services and INAUDIBLE and so forth, that is just a small layer that needs to be put in for a particular end point. We have a totally different technology than other middlewares do for connectivity. We have connectivity INAUDIBLE. People call them connectors or adapters, but these are very intelligent app coms that on one hand know intimately how to communicate with whatever the endpoint is. On the other end of it, they know how to take orders from and communicate to the transformation engine that is pulling all the data together. You have this live orchestration happening with all kinds of different types of data sources live with these app coms knowing how to interact with the data as it flows through. We have a different connectivity, and we have never met an end point we could not connect to. We have connected to electronic instruments, databases, data warehouses, big data, and ERP systems like SAP and all the web services and so forth. CEOCFO: Tell us about implementation. What is involved? Ms. Szabo: Of course it depends on the size of the project, but since it is a single, we call it an IDE, which is an Integrated Development Environment. A person can sit down at the product, point to the sources that they are interested in, and select the data INAUDIBLE select from. They then bring it together, show how the data is all related and then package it however you want to with whatever business logic, which is also drag and drop technology. Testing of course is also happening at the same time. We are testing against live endpoints instead of taking everything to a test separate test environment and going back and forth. CEOCFO: What is your revenue model? Mr. Szabo: We sell perpetual licenses, or we can sell it as a service and then there is a manual maintenance stream. With the service model, that is usually included. We do some services mostly just training and bringing the teams up to speed on the various options for architectures and INAUDIBLE when you get into the nitty gritty, heavy duty performance, tuning and things like that. We do some services, but our revenue is primarily around the product itself. CEOCFO: How do you reach out to prospective customers? If someone is looking, how will they know to search for Stone Bond? Ms. Szabo: We are doing many different things. We have actually been doing a fair amount of online marketing with social media and so forth, and that is kind of a fun thing that we are finding is working very well for us. We are well covered by the analysts Gartner and Forrester, and we occasionally go to conferences and promote ourselves there. It is mostly our internal efforts on getting the word out to big corporations. CEOCFO: What have you learned as the product has been available? What has changed, if anything, over time in the concept and the implementation? Ms. Szabo: The most amazing thing is that we have learned that it lasts through any changes that have happened. We originally put the product out in 2004 or 2005, and we easily upgraded when new underlying technology came along. We have been able to keep up with every one of the new trends like big data and the web services moving to rest and so forth without missing a beat. That has been interesting about it. The other thing that is interesting is that nobody else is doing it this way. I actually have a theory on it and that is that there are two classes, grossly speaking, of integration product. There are the point integrations that are for a particular purpose and then there is the middleware. The middleware is typically IBM, Informatica and Oracle. Those are the big ones that we go up against a lot, and we win technically every time. What has happened is that each of these different models of integration have happened over time. There is a bulk load and then there is more transaction oriented, more real-time data, web services and so forth. What has happened with the enterprise product companies like IBM and such is that rather than build an extension to a product that they have already, they go out and buy another company. When they buy another company, that is another product. They then end up with 50 different products, which cover the full suite of integration, but they cannot share any information back and forth across them. You have to learn a new product for each of those different modes. With ours, you are building the integration logic and then you are just deploying it in any of those loads at all. I think that people who were thinking about integration are always thinking about solving a very specific type of solution. Today everything is web services or INAUDIBLE focused. When you design something if you are thinking that narrowly, it becomes very difficult to expand it to be anything more than that. To do anything else, you have to either buy another product and kind of cobble them together or you have to go back and redesign deep down from your product. CEOCFO: It seems so simple that people might just overlook that! Ms. Szabo: I think that what we benefited from really was that I was thinking about a very complex set of problems that are inherent to the downstream petroleum industry. The have very complex applications that need data, so they can run these complex simulations and everything. They need data from the market, the refinery, prices and volumes, and all these come from totally different applications. This is a problem I had been struggling with for 10 years maybe before we decided to go INAUDIBLE to build the product. I think it is a different perspective on what the problem is that allowed us to come up with it. Today, if any big company or not so big company is struggling with the problem of integration and if you just need a piece of information to get it to them and get it on a list four months down the road to be able to find out a particular kind of information that they want to start and analyze, it is a huge impediment to the operation of the company. If you cannot find out information quickly and if it takes highly trained, very expensive teams of people months to make one change, you are not agile. Everything is about agility. The agile companies are the ones that are going to win. It is a competitive advantage, and that is what our customers see INAUDIBLE. They can shed all of these resources that require hundreds of hours of training before they can write a little script to do a small thing. You can take much more general knowledge programmers and even database analysts and build very sophisticated infrastructure. CEOCFO: What might be different a year or two down to road for Stone Bond Technologies? Ms. Szabo: We are on a roll now, so I think there are going to be many things different. The growth of acceptance and sales of the product show that it is a good thing it is an off the shelf product because we do not have to customize for anybody. We would be having trouble keeping up. With the product itself, we have many exciting things that we are working on with it. For example. If you have heard of master data management, what our product does is a framework that one could call master data management, but we need to add a few management screens to it and so forth to leverage that aspect of it. If you think about a big company, if you were able to traverse this metadata stack that we have, you could actually make a screen that showed all of the data throughout the company, the flow that it goes through and how fast it is moving now, and you could have a very nice video game type thing. There is no way you could do that now in most companies because they do not have the data that just actually flows straight through where it needs to be. It stops at many places along the way, sits there, rests a little bit and has a drink of water. Highlight text from you interview (1 sentence to a short paragraph) for a “pull quote.”